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Small businesses step out of Black Friday's shadow Saturday

A flag urging customers to "Shop Local" is staked Friday near the "A Basket Full" store in Boalsburg, Pa.. Owners of small stores across the nation hope to get a boost from "Small Business Saturday" to encourage holiday shoppers to spend money in local communities on a weekend when big box stores and online retailers draw much of the attention.

Associated Press / Genaro C. Armas

JOYCE M. ROSENBERGASSOCIATED PRESS

Published: Saturday, November 24, 2012 at 5:30 a.m.

Last Modified: Friday, November 23, 2012 at 5:58 p.m.

After the crowds have shopped at large stores and sprawling malls on Black Friday, many smaller businesses — including several in both Volusia and Flagler counties — are hoping Saturday will be their day.

Facts

Small Business Saturday

• Some stores in Volusia and Flagler counties today are participating in "Small Business Saturday," an annual event launched by American Express Company in 2010.• American Express card owners who registered their card for Small Business Saturday by Nov. 18 will get a $25 credit on their statement when they spend $25 or more at a participating retailer.• For a map of area stores participating in Small Business Saturday, visit www.shopsmall.com.• In Flagler County, the Palm Coast Business Assistance Center has a list of participating stores at www.palmcoastbac.com/small-business-saturdays/.

SOURCES: American Express; Palm Coast Business Assistance Center

Thousands of small stores, restaurants, spas — and even dry cleaners — across the U.S. will offer their own discounts and promotions to draw holiday shoppers on what's known as Small Business Saturday.

American Express created the day three years ago, it says, to help small businesses struggling during the recession. The credit and charge card company encourages cardholders, who have registered in advance online to make purchases with their cards in exchange for a $25 rebate paid for by American Express, if they buy something at a participating business.

American Express won't say how much the promotion costs, but Susan Sobbott, president of American Express OPEN, the company's small business division, says it is a considerable amount.

But even small merchants who aren't officially part of the event hope to get a bump in revenue during a weekend when they used to be all but forgotten in an avalanche of deep discounts offered by big stores and online retailers.

Perhaps more importantly, the day has become an opportunity for small businesses to build a corps of customers who will keep coming back year-round.

In Dixon, Ill., 51 small businesses have banded together to recruit local artists and performers to create a partylike atmosphere on Saturday, and they're also planning other events for the holiday season.

A year ago, the combination of the American Express rebate and the events helped give the participating businesses a collective revenue increase of more than 50 percent on the Saturday after Thanksgiving, says Lisa Higby, owner of Distinctive Gardens, a nursery and garden center there. But the benefit goes beyond a one-day jolt.

American Express may have intended to give small merchants — and card usage — a boost in a tough economy, but Small Business Saturday is also helping small merchants get a bigger share of the spotlight and spending between Black Friday and Cyber Monday, a shopping holiday dreamed up to get people excited about shopping online on the Monday after Thanksgiving.

For some retailers, the sales they get after people push back from the Thanksgiving dinner table represents a significant chunk of profit for the year. That hasn't been so true for most small businesses. Ninety-one percent of the 1,003 small business owners said, in a survey commissioned by Bank of America, that the day after Thanksgiving has little, or no, effect on their profit.

To make the most of Small Business Saturday, many small business owners offer discounts as part of a marketing strategy for the entire holiday season.

American Express sends organizing kits to 50 chambers of commerce around the country to help communities create joint Small Business Saturday events, but many come up with ideas about how to promote the day on their own.

Some small business owners will have the kind of early bird specials that Black Friday is famous for.

The event has helped some small business owners turn a day that was often a disappointment into a successful one.

Small businesses that don't accept American Express cards are having promotions of their own.

A search of the special web page set up for Small Business Saturday reveals many businesses that most people don't think of as places to buy gifts, including restaurants and dry cleaners taking part.

Although the Thanksgiving weekend is shopping-focused, American Express purposely created the program so that any small businesses could take part. The company has found that restaurants are the top choice for consumers wanting to use the $25 rebate, followed by bakeries, clothing stores, gift shops and bookstores.

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